Beginning Farmer/Rancher Bond Financing Program

The Washington State Housing Finance Commission (the “Commission”) in partnership with Northwest Farm Credit Services is offering loans for qualifying beginning farmers/ranchers that can be combined with other loans, grants and other sources of funds. The Beginning Farmer/Rancher Bond Program (the “Program”) is a tax-exempt bond program designed to assist beginning farmers/ranchers in the state of Washington acquire agricultural property at lower interest rates.

Background Information and Resources

• Cultivate the Soil: Resources for Beginning & Small-Scale Farmers & Ranchers in Washington State (PDF)
• Farm to Cafeteria Connections: Marketing Opportunities for Small Farms in WA State (PDF)
• Media Release: Beginning farmers purchase their first farms (PDF)
• WSDA Small Farm & Direct Marketing Handbook
• Washington State Farmers Market Manual (PDF)

What is the current loan amount?

Loans financed with proceeds of tax-exempt bonds issued by the Commission are currently available up to a maximum amount of $470,100 (including up to $250,000 for depreciable farm property and up to $62,500 for used equipment/personal property), which may be combined with other loans, grants and other sources of funds for larger projects.

Who is eligible?

• Individuals or families who have not had any direct or indirect ownership interest in farmland in the operation of which such individual materially participated. Or, those who have owned and operated a farm or ranch that was less than 30% of the county’s median farm size.
  Median Farm Size Chart (Word)
   
• A beginning farmer/rancher must be at least 18 years old, a Washington State resident, and must have sufficient education, training and experience in the type of farming operation for which the bond is requested.
   
•  Corporations, partnerships, limited liability companies, etc. are ineligible.

What about other requirements?

The beginning farmer/rancher(s) and/or their children must directly manage and perform the labor for the farming operation. Off-farm income is permitted. The agricultural land, agricultural improvements and depreciable farm property acquired with proceeds of the bond must be used for farming purposes during the term of the bond.

What can be financed?

• Acquisition of agricultural land
• Acquisition, construction and/or improvement of buildings, structures and fixtures to be used in the business of farming and/or ranching
• Depreciable farm property
• Machinery and equipment
• Animals for breeding, work, meat production and dairy

What is the application process?

Contact Wendy Knopp at Northwest Farm Credit Services prior to sending application or if you have questions about loan terms and qualifications: (509) 340-5476 or email wendy.knopp@farm-credit.com

• Download the Application (Word)

Please contact Dan Schilling or Tia Peycheff at the Commission if you have questions concerning initial program eligibility for the Program.

Dan Schilling
Phone: (206) 287-4415 or (800) 767-4663 (toll free within WA)
Email: dan.schilling@wshfc.org

Tia Peycheff
Phone: (206) 287-4416 or (800) 767-4663 (toll free within WA)
Email: tia.peycheff@wshfc.org

If you require assistance downloading this form, please contact us at askusCP@wshfc.org or ask for Viet at 206-464-7139 or 800-767-4663 toll free in Washington State.

This page was modified on 2/08/2010.